Bajaj Finserv shares climb 10% after board announces stock split, bonus issue

Shares of Bajaj Finserv were among the top gainers on Sensex and Nifty today after board of directors announced a stock split and bonus issue of equity shares. Board of the company approved the sub-division of equity shares in 1:5 ratio. This means each share of Bajaj Finserv having a face value of Rs 5 will be split into five shares with a face value of Re 1 each.

An issue of bonus shares has also been announced.  Bonus shares with a face value of Re 1 each for every full paid-up equity share of Re 1 will also be issued.

Reacting to the development, Bajaj Finserv shares touched an intraday high of Rs 14,579.95, rising 9.6 per cent against the previous close of Rs 1,3303 on BSE. On Nifty, stock of Bajaj Finserv rose 9.35 percent to Rs 14,551 in the afternoon session.

The stock trades higher than the 5-day, 20-day, 50-day and 100-day moving averages but lower than 200-day moving averages. The stock has gained 4.23 per cent in one year but lost 11 per cent in 2022. In a month, the Bajaj Finserv stock has climbed 28 per cent.

Share Market Live: Sensex zooms 1,000 pts, Nifty above 16,900; Bajaj twins top gainers

Q1 earnings

Bajaj Finserv also reported a 57 per cent year-on-year (YoY) rise in net profit to Rs 1,309 crore in Q1 compared with Rs 833 crore in the corresponding quarter last year.

The profit figure included Rs 283 crore in unrealised MTM losses of insurance subsidiaries compared with mark-to-market (MTM) gain of Rs 25 crore in the year-ago quarter.

Total income in Q1 climbed 14 per cent YoY to Rs 15,888 crore compared with Rs 13,949 crore in the corresponding quarter last year.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj Group. The company is engaged in the business of promoting financial services such as finance, insurance, and wealth management, through its investments in subsidiaries and joint ventures. It is also engaged in the business of generating power through wind turbines, a renewable source of energy. Its segments include life insurance, general insurance, windmill, retail financing, and investments and others.

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